Cartoon Inc. Has Three Divisions, Bear, Rabbit, And Coyote. Following Is The Income Statement For The Previous?

November 19th, 2012 admin

Cartoon Inc. has three divisions, Bear, Rabbit, and Coyote. Following is the income statement for the previous year:
Bear Rabbit Coyote Total
Sales $500,000 275,000 225,000 1,000,000
Variable Costs 175,000 125,000 100,000 400,000
Contribution Margin 325,000 150,000 125,000 600,000
Fixed Costs 275,000 151,250 123,750 550,000
Profit Margin 50,000 -1250 1250 50000
Of the fixed costs, $300,000 is for corporate costs and is allocated equally to the three divisions.
a. How much does Rabbit Division have in direct fixed costs?
b. What is Rabbit Division’s segment margin?
c. What would Coyote’s profit margin be if Rabbit Division were dropped?
Please help me!! I don’t really understand the questions. I tried working on it. This is what I got so far:
a. It would just be the 151,250 right??
b. Segment margin = CM – traceable fixed costs
Segment margin = 150,000 – traceable fixed (I dont know how to get traceable fixed costs!)
c. I dont know this one.